Moody's Investors Service affirmed its "Baa3" rating on Shands Jacksonville (Fla.) Medical Center's outstanding revenue bonds, affecting $197 million of debt.
Concurrently, Moody's affirmed its "Baa3" issuer default rating on SJMC.
The affirmation is a result of several factors, including SJMC's role as the academic medical center for University of Florida College of Medicine, strong financial support from the city of Jacksonville and the university and proactive management of covenants. Moody's also acknowledged the medical center's variable cash position and challenging payer mix.
The outlook was revised to stable from negative following the completion of the hospitals new inpatient facility, which has generated positive cash flow.